Market update re: Colindale disposal

1 Dec 2008 07:00

1 December 2008

Market Update on Disposal of 399 Edgware Road, Colindale, London NW9 

Development Securities announces today that the £52 million loan notes currently outstanding from the disposal in 2007 of 399 Edgware Road, Colindale, together with interest thereon from 31 July 2008 were not settled by the purchaser on 28 November 2008 in accordance with the previously extended terms.

All payments under the Loan Notes are secured by way of a first charge on the property in favour of Development Securities. An amount equating to approximately 25% of the £68 million disposal price has already been paid by the purchaser to Development Securities and is held on a non-refundable basis.

Development Securities acknowledge that these are unprecedentedly difficult market conditions and are now in discussion with the purchaser in order to ensure that the optimum real estate and financial solutions are achieved.

For further information, please contact:

Michael Marx 020 7828 4777

Development Securities PLC

Mallika Basu 020 7630 1411

The Communication Group plc